How did the car audio retail market do in the first half of the year? Sales were close to flat, according to The NPD Group.
Sales to consumers fell by 1.4 percent in dollars for all car audio, video and navigation products, excluding portable navigation, said NPD.
The Consumer Technology Association (CTA) recently reported that drivers are “hungry for” the new consumer technology in new cars. It said, “As OEMs roll out more tech-filled vehicles, the need for aftermarket upgrades has taken a hit. But the excitement for in-vehicle technology still inspires those drivers with older cars.”
The CTA also said mobile video has turned into driver safety, as suppliers use cameras now for safety as much as as entertainment.
The CTA recently revised its forecasts for the next few years, and found that the car audio aftermarket sales to dealers (dollars) will fall by 8 percent in car audio and 12 percent in mobile video and navigation, in 2016. (But those figures include portable navi devices which will see a 22 percent decline in revenue this year).
The CTA forecasts that total speaker shipments to dealers will increase by 2 percent every year through 2020, increasing from sales to dealers of $313 million this year to $334 million in 2020.
Amplifier sales will fall from $160 million this year to $154 million by 2020 including a 2 percent decline this year.
Head unit sales without screens (CD and mechless) will fall 18 percent this year to $371 million and will continue to decline to $284 million by 2020. However AV and navigation head unit will increase 9 percent this year to $173 million and continue to increase to $197 million in 2020.